[Management View]
Management expressed confidence in aggressive hotel network expansion, with a target of 500 new hotel openings and reaching 2,000 premier hotels by year-end. The retail segment showed rapid growth, prompting an increase in full-year segment growth guidance to 60% YoY. The focus remains on quality and customer experience as core strategic pillars.

[Outlook]
The company projects a 30% net revenue growth and 60% retail revenue growth for the full year 2025. Management plans to continue expanding the hotel network and enhancing retail offerings, with a focus on product innovation and customer satisfaction.

[Financial Performance]
Net revenues for Q2 2025 were RMB2,469 million, up 37.4% YoY and 29.5% QoQ. Adjusted net income increased by 30.2% YoY to RMB425 million, with an adjusted net profit margin of 17.3%. Retail business revenue grew by 79.8% YoY, while leased hotels revenue decreased by 17% YoY.

[Q&A Highlights]
Question 1: Could you share the latest RevPAR trend performance in the third quarter to date, especially during the summer holidays? And what's your latest view on the full year RevPAR trend?
Answer: Entering the summer season, the market shows characteristics like rotating travel hotspots. Overall demand hasn't fully recovered, but summer leisure travel shows resilience. We expect Q3 RevPAR pressure to ease compared to Q2, with a gradual improvement in full-year RevPAR recovery. We will maintain a balanced strategy between OCC and ADR to enhance profitability.

Question 2: Are there any changes to the 2025 guidance on hotel openings and closures? What is the recent trend in franchise signings?
Answer: We are confident in achieving our full-year guidance of 500 new hotel openings and reaching 2,000 premier hotels. We closed 34 hotels in H1 and expect 70-80 closures for the full year. We maintain high standards for signings to ensure quality growth, focusing on location and network management.

Question 3: What's the full-year revenue guidance for the retail business? Could you discuss future development plans and challenges?
Answer: We raised our full-year retail business growth guidance to 60% YoY. We will continue launching new products and refining our product metrics. We focus on optimizing the supply chain and strengthening R&D to drive industry standards. Competition is intensifying, but we remain focused on quality growth.

Question 4: Can the full-year adjusted net income margin stay stable at 18% like last year?
Answer: Due to the rapid growth of our retail business, the revenue structure shifted, impacting net profit margin. The adjusted comprehensive tax rate is expected to rise to 30%, affecting the full-year net profit margin, leading to a year-on-year decline.

Question 5: What are the targets for Sahe and Atour Lite hotel brands?
Answer: Sahe has been well-received, with high-quality projects in key cities. We focus on quality-first expansion. Atour Lite 3.3 has strong signing momentum, and we aim for 1,000 Atour Lite hotels, focusing on core urban areas and key business districts.

[Sentiment Analysis]
Analysts showed a positive tone, congratulating management on strong results. Management expressed confidence in achieving growth targets and emphasized strategic priorities.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 | QoQ Change | YoY Change |
|-------------------------|---------|---------|------------|------------|
| Net Revenues (RMB) | 2,469M | 1,797M | +29.5% | +37.4% |
| Adjusted Net Income (RMB)| 425M | 326M | N/A | +30.2% |
| Retail Revenue (RMB) | 1,020M | 567M | +39.1% | +79.8% |
| Leased Hotels Revenue (RMB)| 150M | 181M | +16.4% | -17% |

[Risks and Concerns]
The adjusted net profit margin is expected to decline due to a shift in revenue mix towards retail and an increase in the effective tax rate to 30% in 2025. The decrease in leased hotels revenue reflects a reduced number of leased hotels.

[Final Takeaway]
Atour Lifestyle Holdings Limited demonstrated strong performance in Q2 2025, driven by aggressive hotel network expansion and significant growth in the retail segment. Management remains confident in achieving full-year growth targets, despite challenges such as increased competition and tax rate impacts. The company's strategic focus on quality and customer experience positions it well for sustainable long-term growth.